Promoters Holding- Urgent query
P.C. Joshi
(Querist) 29 October 2009
This query is : Resolved
Dear Friends,
Pls let me have your considered views on the following query.
In a listed company, promoters holding at present is abt 73.50%. promoters want to increase their holding upto 75%. What are the
compliances involved under SEBI takeover Code, Listing agreement and other applicable laws.
Regards
P.C. Joshi
Guest
(Expert) 18 December 2009
To my limited knowledge, the company is supposed to have or maintain the retail holding as per SEBI (DIP) regulations. If SEBI (DIP) regulations permit the promoters to hold 75% logically, then, I don't think that there will be some condition in the listing agreement contrary to that. Listing agreement is meant to providing continual disclosures to the investing public and prevent the possibility of frauds, but, the rule making authority is SEBI and the regulations prescribed by SEBI matters more than the listing agreement.
Thank you.
